Are banks easing lending standards?

[Andrew]

Are banks easing lending standards? Since the financial chaos 2 or 3 years ago banks became strict about most lending practices. The Federal Reserve recently made a statement saying that "At the same time, banks reportedly experienced, on net, slightly weaker demand for some categories of residential real estate loans,". This could mean more lending and much needed economic growth coming soon. What are your thoughts on this?

[Derrick]

Banks are slowly starting to ease lending standards. It's nothing like it used to be at the top of the housing boom where you could buy a house with no money down, with no income and lenders would still expect you to find payments easily. Those days are over for a long time, but sane lending is slowly coming back! :)

[Andrew]

I haven't noticed them easing lending standards much yet. They still want to be very sure you can repay the loan and that you have collateral in case you fail to make the payments. Banks are looking to profit first and foremost. They also want to put their money to work though.

[Derrick]

I haven't noticed them easing lending standards much yet. They still want to be very sure you can repay the loan and that you have collateral in case you fail to make the payments. Banks are looking to profit first and foremost. They also want to put their money to work though.

Me neither, but where I'm from the situation is not as bad as in other areas. For example it is probably the worst in california right now as far as qualifying for a loan. That's really what you need to look at is the location, in less effected areas of the recession you might have a better chance at getting a secured loan.

[felisterjack]

A brief look at how changes in rates and lending standards contributed to the current housing market climate. In listening to CNBC last night regarding the so-called "sub-prime mortgage meltdown", I started to think about how we got here and where are we going next.